H*4369(Rat #0344, Act #0306 of 1996)  General Bill, By Cato, Kirsh, Meacham, 
Riser and Vaughn
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 41-39-40 so as to provide for the voluntary withholding of state and federal
 income taxes from unemployment compensation.

   12/20/95  House  Prefiled
   12/20/95  House  Referred to Committee on Labor, Commerce and Industry
   01/09/96  House  Introduced and read first time HJ-69
   01/09/96  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-69
   02/07/96  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry HJ-3
   02/08/96  House  Amended HJ-12
   02/08/96  House  Read second time HJ-13
   02/08/96  House  Unanimous consent for third reading on next
                     legislative day HJ-13
   02/09/96  House  Read third time and sent to Senate HJ-1
   02/13/96  Senate Introduced and read first time SJ-8
   02/13/96  Senate Referred to Committee on Finance SJ-8
   03/27/96  Senate Committee report: Favorable Finance SJ-17
   03/28/96  Senate Read second time SJ-19
   03/28/96  Senate Unanimous consent for third reading on next
                     legislative day SJ-19
   03/29/96  Senate Read third time and enrolled SJ-62
   04/30/96         Ratified R 344
   05/06/96         Signed By Governor
   05/06/96         Effective date 05/06/96
   05/29/96         Copies available
   05/29/96         Act No. 306

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 41-39-40 SO AS TO PROVIDE FOR THE VOLUNTARY WITHHOLDING OF STATE AND FEDERAL INCOME TAXES FROM UNEMPLOYMENT COMPENSATION.

Be it enacted by the General Assembly of the State of South Carolina:

Income tax withholding

SECTION 1. Chapter 39, Title 41 of the 1976 Code is amended by adding:

"Section 41-39-40. (A) As of January 1, 1997, an individual filing an initial claim for unemployment compensation must be advised at the time of the filing of the claim that:

(1) Unemployment compensation is subject to federal and state income taxation;

(2) Requirements exist pertaining to estimated tax payments;

(3) The individual may elect to have federal income tax deducted and withheld from the individual's payment of unemployment compensation at the rate specified in the Internal Revenue Code of 1986;

(4) The individual may elect to have South Carolina state income tax deducted and withheld from the individual's payment of unemployment compensation at the rate of seven percent;

(5) The individual is permitted to change a previously elected withholding of income tax at least once.

(B) Amounts deducted and withheld from unemployment compensation shall remain in the Unemployment Trust Fund until transferred to the federal or state taxing authority as a payment of income tax. The date of transfer to the South Carolina Department of Revenue and Taxation must be the same date as the transfer to the Internal Revenue Service.

(C) The commission shall follow all procedures specified by the United States Department of Labor and the Internal Revenue Service pertaining to the deducting and withholding of income tax.

(D) Amounts must be deducted and withheld under this section only after amounts are deducted and withheld for any overpayments of unemployment compensation, child support obligations, or any other amount required to be deducted and withheld under this title."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.

Approved the 6th day of May, 1996.